CBA adopts Bloomberg auction platform
By Sara Israfilbayova
The Central Bank of Azerbaijan (CBA) has announced about conduct of its auctions for foreign exchange (FX) instruments and deposits through Bloomberg’s auction platform.
The Bank reported that the Bloomberg auction platform will be a single platform for these operations of the CBA.
The CBA has started holding deposit auctions since June 2016. During a deposit auction, held twice a week, is the Central Bank accepts deposits from commercial banks for placement.
The main purpose of deposit auctions is sterilization of the money supply (withdrawal of money from the economy), which is carried out by the Central Bank in the framework of monetary policy.
“Designed to help central banks and financial ministries manage primary market operations, the technical capabilities of the platform has been recently further extended to facilitate transactions with FX instruments (spot and forward) and deposit auctions following the CBA request; originally the platform enabled to conduct transactions with securities and repo products,” the CBA announced on July 6.
The multilateral Bloomberg auction platform gives its participants the opportunity to watch the CBA auctions and take part in them, according to the Bank’s message.
Auction data will go into Bloomberg’s FX electronic trading platform, FXGO. Available to subscribers of Bloomberg Professional Services, the system is fully integrated with Bloomberg’s data, news, analytics and communications tools.
Tod Van Name, Bloomberg’s Global Head of FX Electronic Trading noted that it is a pleasure to work with the Central Bank of Azerbaijan and offer a platform that enables a step change in the management of monetary operations , Finextra reported.
The volume of official foreign exchange reserves of the CBA amounted to $4.9 billion as of July 1, 2017. The foreign exchange reserves increased by $138.7 million or 2.9 percent, as compared to June 1.
The foreign exchange reserves of the regulator increased by $989.7 million or 24.9 percent, as compared to the beginning of the year and on a year-on-year basis - by $680.2 million or 15.9 percent.
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